New home sales recover ‘modestly’ in October: HIA

Sales of houses and units bounced back in October following falls in September, according to latest HIA - JELD-WEN New Home Sales Report. 

Detached house sales increased by 5.1% in October 2011 following a 3.3% decline in September while sales of multi-units rose by 9% in October following a 5.5% dip in September. 

The volume of detached house sales improved in four out of five mainland states in October 2011, rising by 20.8% in Queensland (helped by the $10,000 Queensland Government building boost), 4.9% in Western Australia, 1.4% in South Australia and 1.1% in New South Wales. Sales fell by 1.2% in Victoria.

Overall, the total number of new homes (detached and non-detached) sold in the month of October 2011 increased by 5.5%, although sales remained down by 8% over the three months to October.

HIA chief economist Harley Dale described the “modest” improvement in October as encouraging start for the December quarter. 

“With falling interest rates, a competitive building market, and a greater availability of skilled trades amidst soft housing conditions, now is certainly a good time to build a new home for those who are financially set to take that decision,” says Dale. 

“As it stands the profile for new home sales remains very weak, despite this latest monthly increase. In October 2011 the volume of detached house sales was 29% below the average of the last 15 years."

 “Any logic behind achieving a swift return to budget surplus in 2012-13 is spurious given current global economic conditions.”